A report developed by Francisco González Bree for the blog CNEV upholds this idea based on the analysis of three innovation indexes of global importance  

By the end of January, the results of three very important global innovation indexes were published.

The first index developed by Bloomberg, analyses the level of innovation intensity of the 50 main countries regarding 7 variables. The study analysis R+D, added value of fabrication, productivity, density of high technology companies, levels of superior education and research, and, finally, patents activity.

The first place in the ranking goes to South Korea, followed by Germany, Sweden, Japan, Switzerland, Singapore, Finland, United States, Denmark and France.

The second innovation index published this week is the study Contributors and Detractors: Ranking Countries ¨Impact on Global Innovation de la ITIF (Information Technology & Innovation Foundation). This report analysis the impact that economic and commercial politics from 56 countries, representing 90% of the global economy, have on the global innovation system. A relevant point it analysis is knowing whether innovation capacities are being encouraged through positive innovation policies. Some of these policies include investments in R+D, education or tax incentives for innovation that make a positive contribution to global knowledge and innovation.

In addition, it analysis negative innovation policies for global innovation (mercantile innovation) such as trade barriers, grants to exportations or not protecting foreign intellectual property rights. It is particularly interesting that the countries with best scores in the report share a typology of innovation politics that the authors call Schumpeterian. The first place is for Finland, followed by Sweden, United Kingdom, Singapore and Netherlands.

The third innovation index analysed by Gonzalez Bree is the report The Global Innovation Index 2015 developed by the World Organization of Intellectual Property, INSEAD business school and Cornell University. According to the author, following this report through its conceptual framework (page 42), which provides two major blocks: inputs and outputs.

Inputs include five areas of study: institutions, human capital and research, infrastructure, markets sophistication and business sophistication. Among the outputs there are variables linked to knowledge, technology and creative outputs. In the 10 first places we can find: Switzerland, United Kingdom, Sweden, Holland, United States, Finland, Singapore, Ireland, Luxemburg and Denmark.

Countries from our region (Latin America) fall far behind the firsts places in the three indexes analysed. Innovation is vital for progress and economic development.

Robert Atkinson co-author of the global innovation study of ITIF explains that adopting positive policies for a global innovative environment shall produce benefits for citizens. The most innovative countries share some common characteristics, such as investing on science, human capital, and developing tax policies that encourage innovation.

The author states that if we analyse the impact of innovation from a perspective based on areas or regions of the world, we can appreciate that innovative economic regions show better performance in terms of employment and standards of life. If we analyse the issue from a business perspective, we find a relation between a company’s profit and the election of an innovation strategy, where the level and growth of profit is higher in companies that make permanent efforts in R+D. Innovation improves a company’s performance as the product of innovation improves a company’s competitiveness and the process of innovation transforms internal capacities enabling companies to adapt better to change.

Clearly, working for the future in our region demands promoting and increasing the innovative environment.